Two-period cost of production reports; FIFO inventory The Compass Division of Habor Marine Manufacturing makes an illuminated liquid marine compass. Manufacturing costs are accounted for using a process costing system. The last process center in the production process is Assembly where the compass assembly is installed in the housing, the unit is wired, and the housing is sealed. Production quantity and cost data are presented at the top of page 243 for the months of April and May.

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REQUIRED a. Prepare the cost of production reports in good form for the Assembly Department of Harbor Marine Manufacturing for April and May. Computer requirement An internal audit of production functions reveals that the percentage of completion for conver- sion of ending work in process inventories in the Assembly process center for April and May were 10 percent and 60 percent, respectively. b. Prepare corrected cost of production reports for April and May for the Assembly process center. c. Calculate the impact on the cost of ending inventory and the cost of units completed caused by the error mentioned above for the months of April and May.